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Loan against property

LOAN AGAINST PROPERTY

Businesses often need substantial funding to purchase a new plant, new machinery or for other similar commercial venture. And in such cases, an idle residential or commercial property can come in very handy. Hero FinCorp offers loan against properties with long tenures and at attractive interest rates.
The loan is quickly approved after evaluating your business, your property to be mortgaged and other relevant documents.

Eligibility & Documentation

Eligibility

  • Available for Business Entities & Self Employed Professionals
  • Applicant Age: Minimum 25 years
  • Business Vintage: Minimum 03 years

Documentation

  • KYC
  • Income Proofs (ITR, Financial Statements, Projections, etc.)
  • Company Constitution Proofs & Registration Certificates (Business Entities only)
  • Property Papers

LOAN AGAINST PROPERTY

Loan against property amount from INR 50 Lac to 15 Crore.

Flexible Tenure of LAP up to 15 years.

Quick Approval and Disbursal of the Property Loan.

High Loan to Value of the property, up to 75%.

Why-Choose-Loan-Against-Property

Why Choose Loan Against Property?

  • Higher loan amount: Since the mortgage loan is taken against a house or piece of land or similar, the loan amount you will receive will be higher than any other loan type.

  • Longer tenure: LAP is offered for a maximum tenure of 15 years which makes it very comfortable for you to pay back the loan, without hampering the profitability or cash flow of your business.

  • Low interest rates: The interest rate on loan against property is low since your collateral is valuable. Hence, your EMIs will be lower and more affordable than in case of personal loans.

  • Easy to obtain: Since you are providing sufficient collateral, getting this loan can be very easy and quick.

Property Types Eligible for Loan Against Property

Must Know Facts about Loan Against Property

  • Flexibility: Various kinds of properties can be offered as collateral to avail a loan against property in India. They can be of different sizes or values as well.

  • Types: Residential, commercial and even mixed use properties can be offered as security for this loan. From buildings and lands to commercial premises, factories, shops, and apartments, you can provide all kinds of collateral.

  • Alternate assets: You can also provide hospitals, nursing homes, hotels, guesthouses, farm houses, vacant plots, schools or colleges and industrial properties as collateral.

  • Property title: The title of the mortgaged property should be clear, marketable and there shouldn’t be any existing loan, litigation or mortgage on the property itself.

  • Insurance: No matter what type of property you offer as collateral, make sure it is insured against fire and other hazards.

Loan-Features

Loan Features

  • Mortgage loan amount: The amount you receive can be anywhere between INR 50 lac and INR 15 crore, depending on the market value of your property and other eligibility factors.

  • LTV ratio: It can be as high as 75% of the mortgaged property value. Hence, you will get sufficient funds to fulfill your goals.

  • Flexible tenure: Your repayment tenure can go up to 15 years which makes EMIs easy to pay.

  • Low interest rate: Though interest rate is calculated on the loan amount disbursed, it is low and attractive.

  • Who can apply: Traders, manufacturers, service providers, business entities and self employed professionals can apply for loan against property. Age, income, credit score, property valuation, existing obligations, continuity of business and employment are other factors that are considered.

How Can Loan Against Property Be Used?

How Can Loan Against Property Be Used?

  • Business / commercial purposes: A loan against property in India can help you expand your business, buy machinery or a new plant, or finance a new project.

  • Consolidation of debt: LAP can help you consolidate several small but high-priced loans into one bigger loan that is low-priced and has a higher tenure. Your loan amount will also increase.

  • Lease rent discounting: LRD is the process in which you can use rental receipts from your existing property as security to get LAP loan from Hero FinCorp. This way, the money you get as rent will go into paying off the EMIs. Consequently, you will be able to use the LAP to buy new properties and get tax deductions.

  • New commercial property: You can use LAP to buy new commercial property, expand your business, make more revenues and pay off your existing loan.

LAP-Balance-Transfer-Benefits

LAP Balance Transfer Benefits

  • Switching to a better lender: If you had taken a LAP from a different bank or NBFC but see that Hero FinCorp is offering a lower interest rate, you can transfer your loan from the previous lender to us on better terms. You won’t have to pay the amount that you already repaid to your previous lender. You can start by paying off the remaining amount.

  • Better terms: With balance transfer, you get a lower interest rate, longer tenure and you can also get a top-up or additional loan on your existing loan.

  • Tenure flexibility: Even if you agreed to a certain tenure period with your previous lender, you can increase or decrease it when you transfer the balance to us.

  • Save more: If the interest rate you get from us is lower by even 0.5% than your previous one, you will save considerable amount of money every year.




Why Choose Hero Fincorp For Loan Against Properties?

Why Choose Hero Fincorp For Loan Against Property?

  • Loan amount: The mortgage loan amount offered by Hero FinCorp is high and often 75% of the collateral’s value.

  • Tenure and interest rates: Low interest rates and long tenures make LAP an attractive option when you need a large amount of funds.

  • Variety of collaterals accepted: Almost all kinds of property are accepted as collateral, including land, building, apartment, factory, shop, hospital, school, and more.

  • Multiple repayment modes: You can repay your loan through online payment, Electronic Clearing Service (ECS), National Automated Clearing House (NACH), or post-dated checks (PDC).

  • Doorstep document collection: Customer relationship professionals visit your home to collect all necessary documents.

  • Fast processing: It takes only about 7 to 10 days to process a LAP loan, if you are eligible and all documents are in place .


Customer Testimonials

  • Iqbal Duggal, Ludhiana

    LOAN AGAINST PROPERTY

    We took a loan against properties around five months ago, and found that the dealings with Hero FinCorp were very convenient. Their relationship manager handled the entire process from documentation to release of funds in a very smooth and hassle-free manner. The interest rate for Loan Against Property offered to us was very competitive. We strongly recommend Hero FinCorp.

    Iqbal Duggal, Ludhiana
    Business Owner

  • Aditi Jain, Hyderabad

    LOAN AGAINST PROPERTY

    We wanted to take a loan against commercial property thankfully Hero FinCorp specializes in this. Our relationship manager understood the specific challenges of our company, and created a financing solution which was just right. On the whole Hero FinCorp proved themselves to be a reliable & dependable partner.

    Aditi Jain, Hyderabad
    Entrepreneur

  •  Jai Kabra, New Delhi

    LOAN AGAINST PROPERTY

    Our relationship with HFCL is a year old. We took the loan in view of building a long term relationship with a growing NBFC like HFCL and open the door for MDL Group's future requirements. Professionally speaking our experience with HFCL has been excellent on all fronts. Their Relationship Managers have a good understanding of the client’s needs. I believe, this creates a sense of satisfaction for both the lender and borrower.

    Jai Kabra, New Delhi
    President, MDL Energy Pvt. Ltd.

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    FREQUENTLY ASKED QUESTIONS (FAQS)

    Q1 For what purposes can you avail Loan Against Property?

    You can avail Hero FinCorp’s Loan Against Property (applicable for both, Residential & Commercial Properties) for business purposes and activities which are not speculative or non-prohibitive.

    Q2 How is my loan amount eligibility decided?

    We decide your loan amount based on your repayment capacity. Further, the repayment capacity is considered on the basis of income, age, number of dependents, qualifications, spouse's income, assets, liabilities, stability and continuity of occupation and savings history. In addition to considering these factors, the maximum amount shall not exceed 85 per cent of the cost of property.

    Q3 Who can be co-applicant to the loan?

    You may include your spouse as a co-applicant for the Loan. His / her addition as a co-applicant can enhance the loan amount. Please note : all co-owners of the property should necessarily be the co-applicant.

    Q4 How is the loan repaid?

    The repayment of loan is done in Equated Monthly Installments (EMIs). This comprises principal and interest. Repayment by EMI commences from the next month in which you take full disbursement.

    Q5 What is Pre-EMI interest?

    Post final disbursement, you have to pay interest on the portion of the loan which is disbursed. This interest is called pre-EMI interest. Pre-EMI interest is payable every month, starting from the date of each disbursement up to the date of commencement of EMI.

    Q6 What security/collateral will I have to provide?

    The security/collateral for the loan will be the first mortgage of the property. Collateral security such as assignment of insurance policy or any such other assignable financial instruments would suffice the need, The title to the property needs to be clear, marketable and free from encumbrance. Most importantly there should not be any existing mortgage, loan or litigation on the property.

    To elaborate, there should not be any existing mortgage, loan or litigation which is likely to affect the title to the property adversely.

    Q7 Can I repay the loan ahead of schedule?

    Yes, you can as per the terms mentioned in your loan agreement.

    Q8 Does the property require insurance?

    Yes, the property has to be duly and properly insured for fire and other appropriate hazards, as required by Hero FinCorp.

    Q9 Are Hero FinCorp policies subject to change?

    Yes, these policies periodically reviewed.

    Q10. How can I check my eligibility and loan amount?

    The following factors are considered to determine eligibility and loan amount

    • Age
    • Income
    • Valuation of the Property
    • Existing obligations
    • Stability/continuity of employment/business

    Q11. If a property is jointly owned by an individual and his/her relatives, can he/she take a loan against this property?

    It is necessary for all the co-owners of the considered property to be in as co-applicants to the loan.

    Q12. What is the tenure of the loan?

    Repayment of loan can be done over a maximum tenure of 15 years. Beyond the age of retirement or on reaching 60 years of the age, the repayment will not be ordinarily extended. However, Hero FinCorp will be endeavoring to determine the repayment period to suit your convenience.

    Q13. What are the end uses of the loan against property which can be sanctioned by Hero FinCorp?

    • Business needs
    • Mortgage buyout/Balance Transfer of existing loan
    • Consolidation of debt

    Q14. How long does it take to process a Loan Against Property application?

    The processing of the loan against property application usually takes 7 to 10 working days, post submission of all required documents.

    Q15. Is it necessary to insure the property?

    Yes, you need to make sure that the property is absolutely insured for fire and other hazards, as required by Hero FinCorp, during the tenor of the loan you would be required to produce evidence to us each year or a proof as asked for.

    Q16. How is the Equated Monthly Installment (EMI) calculated?

    Based on the loan amount, the repaying period and the interest rate on the borrowing amount the EMI is calculated. The EMI is subjected to change when interest rate changes or a part-payment of the Loan is made. Every month, part of the EMI is adjusted towards the interest payable and the balance is adjusted towards repayment of the principal.

    Q17. What are my different options for making my EMI payments?

    You may repay your LAP in any of the following four ways:
    Post-Dated Cheques (PDCs), Electronic Clearing Service (ECS), National Automated Clearing House (NACH) & Online Payment.

    Q18. How can I make a request to foreclose my Loan Against Property account?

    Kindly submit a written request to your nearest Retail Loan Service Centre to close your account. Our customer service desk will provide you with the necessary assistance.

    Q19. How do I apply for a Loan Against Property (LAP)?

    You can apply for a loan in the following ways:

    • Call our Customer Care numbers provided on the website
    • Visit your nearest branch
    • Our existing liability customers may also get in touch with their Relationship Managers/ Personal Bankers to know more and apply for LAP.

    Q20. What Property can be considered as collateral for LAP?

    Properties which are self-occupied Residential or Commercial for example shops and offices can be considered as collateral.

    Q21. What is the maximum loan I can get against my Property?

    You can get a Loan Against Property up to a maximum of 75%* of the market value of your property.**conditions apply

    Q22. Is there any minimum Credit Score requirement?

    There is no specific credit score requirement as per Hero FinCorp Limited policy. However, it is under the discretion of Hero FinCorp to accept or reject any loan application basis any irregularity noticed in the rating.

    You can avail loan against properties on residential or commercial properties, to fund a business need. The interest rate on loan against commercial property or loan against residential property is attractive and tenures are comfortably long. Also, since loan against property interest rates are lower than personal loan rates, it is better to go for a mortgage loan to meet urgent and substantial funding needs. To satisfy our eligibility criteria, you need to be a trader, manufacturer or service provider. To avail loan against property in India, your property must be valued above INR 50 Lac and it should be maximum 50 years of age. You should at least be 25 years old and submit proofs of age, income, property valuation, stability of your business, any existing obligations, and other relevant KYC documents. The property to be mortgaged has to be insured against fire or other natural calamities during the loan period, and property title should be clear and marketable. If you own the property jointly with someone else, then all the co-owners must become co-applicants for the loan. Please note that the loan amount and loan against property rate of interest depends on your repayment capacity and other eligibility factors. So simply fill up the form provided above to apply for the best mortgage loan now.

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